Housing starts rise locally, nationally

In Volusia County, 239 building permits were issued for new homes in the third quarter, the most in four years. In Flagler County, 52 building permits were issued.

CLAYTON PARKBUSINESS WRITER

Home builders locally and nationally are feeling more optimistic these days, and new data released Wednesday explains why. Volusia County had its best quarter for new building permits in four years, Flagler County was running ahead of last year in new home permits and the industry nationwide had its best month for starts and permits since 2008. Prices are rising, too, stirring confidence among local builders that a sustained recovery may be taking hold. Builders nationally began construction on an estimated 872,000 homes in September — the most since July 2008, according to the U.S. Department of Commerce, which also reported that the number of building permits issued last month for new homes rose to an estimated 894,000 — also the most in more than four years. New housing starts nationally for September exceeded by more than 100,000 the 770,000 forecast by economists surveyed by Marketwatch, a financial news website. In Volusia County, 239 building permits were issued for new homes in the third quarter, the most in four years, according to the county's economic development division. The number of building permits issued for new homes for the three-month period that ended Sept. 30 is up 104 percent from a year ago, and up 35.8 percent from the second quarter of 2012. “We're far from a full recovery, but it shows that local builders and local buyers are feeling increasingly confident,” said Rob Ehrhardt, Volusia County's economic development manager. In Flagler County, 52 building permits were issued for new homes in the third quarter, according to preliminary numbers provided by the Flagler Home Builders Association. That's a 48.6 percent increase from the 35 permits for new homes issued in the third quarter of last year, but a 5.4 percent decrease from the 55 issued in the second quarter of this year. For the year-to-date, through Sept. 30, 157 permits have been issued so far for new homes in Flagler County — already topping the 153 issued in all of last year, said Debi Peterson, executive officer for the Flagler Home Builders Association. But unless there is a significant pickup in sales of new homes in Flagler County, it appears unlikely that housing starts for the county will exceed the numbers for 2010, when 268 permits were issued for new homes. Mike Sawdai, vice president of operations for SeaGate Homes in Palm Coast, Flagler County's largest homebuilder, said his company currently has 20 new homes under construction in the county, with an additional 11 in the permitting stage. The company also has one new home under construction in Volusia County and three under construction in St. Johns County. “We're at a similar pace to last year, although our average price is up almost $25,000 year over year,” Sawdai said. Jim Paytas, owner/president of Paytas Homes in Port Orange, said his company currently has 33 new homes under construction and 17 more in the permitting stage. A year ago at this time, the company had just 20 homes under construction. “We've really seen a turnaround,” Paytas said, adding that his company recently raised prices for its new homes for the first time in three years. The Department of Commerce released its national housing start and building permit numbers for September a day after the National Home Builders Association and Wells Fargo released their latest national housing market index report, which found the overall confidence levels of U.S. builders rose in October to the highest level in more than six years. Ehrhardt said not only are housing starts up in Volusia County, but so are overall prices. The average value of building permits issued for new homes in the county in the third quarter was $287,946, an 11.7 percent increase over the $257,580 average value for permits issued in the third quarter of last year, he said. “It perhaps indicates a sustained recovery has taken hold in the (local) residential construction market,” Ehrhardt said. Sandy Bishop, executive officer for the Volusia Building Industry Association, said her members are becoming increasingly optimistic about the local housing market. Some are even starting to look at adding more workers to keep up with the increase in sales. With interest rates remaining at or near record lows, and the inventory of foreclosure properties on the market continuing to shrink, those thinking about buying a new home should do so soon, before prices start to significantly to rise, as they inevitably will, Bishop said. “Confidence is rising, permits are rising, but costs are going to be rising,” she said. “The time to buy is now.”